You have what?..."15 credit cards"

Yes, I currently manage 15 active credit cards.  For a living I formulate large budgets so keeping track of numbers comes easy.  With 15 credit cards I do have a spreadsheet I maintain to keep track of all necessary data pertaining to bonuses, fees, benefits, expiration dates etc.  The hardest part is remembering what card I need to use for a particular purchase.  While all of my previous posts have been referencing my upcoming Asia trip, my daily spending is being geared for the next continent I plan to cross of my list; South Africa.  Knowing where I plan to visit and what airline I’ll use to arrive at my destination determines what cards I’ll use for my spending.  Let’s go back to the quantity of credit cards for now.  So what did 15 credit cards do to my credit score…not much.  In November 2012, my credit score averaged 810.  Since then I have refinanced a mortgage and had several hard credit inquiries.  Hard pulls are when one of the 3 main credit bureaus – TransUnion, Experian and Equifax access your credit report.  Once you cross a certain number of hard pulls in a particular  period your score is impacted. 

My credit score on 3/15/13 was 760.  I anticipated this drop because I had many self initiated inquiries in the last quarter of 2012. I check my score monthly using Credit Karma.  While this service is free it’s not as accurate as the credit score ratings I received from the three main bureaus while applying for a new mortgage.   The drop to 760 is the result of the inquiries from the refinance and two new cards, by May the score will bounce back to the 790 range.  With regards to my refinance I locked in at one of the lowest rates offered so my credit history has not been impacted by my points chasing hobby.  If your credit score is less than 700, this hobby is not for you.  If you cannot pay off your credit card balance each month, this hobby is not for you.  If you cannot budget your spending, this hobby is not for you.

With credit scores keep in mind that while my score dropped from 810 to 760 I did not lose access to the lowest interest rates available.  After 760 you won’t acquire a lower rate even though credit scores register to 850.  It’s only if you drop below 750 where your interest rates might increase.  If you think knowing all this background information is excessive, it’s not, I can control which credit bureau looks at my report by knowing what banks are affiliated with each bureau.  Why do I care…because my stellar credit is my greatest asset, it allows me to take advantage of these travel opportunities.  If I compromise my good credit my trips stop, my interest rates go up and I’m screwed.  So I learned all I could about credit scores as I was once like you afraid to dive in and take the plunge.  This post should be all the more reason for you to stay engaged in my topics and please feel free to ask any questions, I’ll do my best to answer or point you in the right direction, after all why should I be the only one travelling the world for almost nothing?